“That one can convince one’s opponents with printed reasons, I have not believed since the year 1764. It is not for that purpose that I have taken up my pen, but rather merely to annoy them, and to give strength and courage to those on our side, and to make it known to the others that they have not convinced us.”
G.C. Lichtenberg (1742 – 1799), courtesy of 'Deogolwulf'

Tuesday, 22 January 2013

Ach, ach, oh mein Gott, wot a bloomin' lot!

Needless to say, in the finest traditions of this blog that title has very little connection to the content of this post except that it is concerned with the warning words of Herr Jens Weidmann,' ze boss of ze' German Bundesbank and therefore a man of whose opinion on financial matters one should take seriously. And he, himself, is being very serious according to the FT which reports that Herr Weidmann is concerned that politicians are increasing their efforts to subvert the independence of their central banks with the aim of bringing about a devaluation of their currencies in order to give their nations a distinct advantage in the competition for overseas markets. You might call it 'the Lance Armstrong effect'! He points the finger at Hungary and Japan but warns that it could spread.

Mario Draghi, the boss of the European Central Bank needs to be watched like a hawk because one suspects that the likes of 'Mr. Rompoy-Pompoy' would love to shove his hand up the back of Draghi's beautifully cut Italian suit and pull his levers! Meanwhile, I can't wait to bid good riddance to Mervyn King, our useless and compliant Governor of the Bank of England who had about as much fight in him as a soggy sandwich! Now all eyes are on Mr. Mark Carney, the most famous Canadian since, er, well, I can't think of any famous Canadians, who is about to take over at the BoE. He shouldn't have much trouble slapping those posh public schoolboys into place but how will he stand up to 'Bruiser' Balls in a couple of years time?

Suffice to say that even the possibility of a global exchange rate war makes me shiver!

1. In yesterday's DT some talking head or other was quoting as saying that "inflation targetting has had its day" - in other words, inflation/devaluation is about to be let rip.

2. In the same newspaper it was claimed that UK house prices will soon exceed their pre-crash maximum; this was mentioned as if it were a good thing, but of course it's just a symptom of the coming inflationary lift-off: the newly-printed money goes first to the banks, who lend some of it out in mortgages, thus supporting the ridiculous price of property in this country (with more than a little help, of course, from our utterly disfunctional planning system)

Hold onto your hats and don't keep any paper money, it's about to lose another lump of its value. Naturally public sector workers and benefit claimers will be well looked after, as usual.

Mr Chin has graduated from a bowl of rice to a meat(ish) pie per day, John Bull has moved from roast beef to a meat(ish) pie. The Japanese are printing Yen fit to bust and if your money is in a UK bank - well buy a wheelbarrow. Stoking the embers now will have the economy warming up nicely by 2015 in time for Dave's big day. Inflation - you've tried the rest, now try the best.

It's an ill wind though, round my way farmers are grubbing out orchards and planting wheat and down at the stockyard even the most worn out cow brings in a pretty Euro. Cheap meat pies are where it's at.